Is the SPDR S&P/ASX 200 Fund (ASX: STW) an ASX exchange-traded fund (ETF)? That's a good question.
The SPDR S&P/ASX 200 Fund certainly doesn't have 'ETF' in its name. Most ETFs on the ASX, such as the Vanguard Australian Shares Index ETF (ASX: VAS), do.
But that doesn't mean much, to be frank. So for a fund to be an ETF, it needs to be two things. Firstly, a fund (the F in ETF). This, the SPDR S&P/ASX 200 Fund is, as its name implies. Secondly, an ETF needs to be 'exchange-traded' (the ET in ETF).
Since the SPDR S&P/ASX 200 Fund can indeed be traded on the ASX under the ticker code 'STW', and is a fund, we can conclude that it is indeed an ETF.
Not just any ETF though. This fund has the unique distinction of being the oldest ASX-tracking index fund on the share market. Yes, it has an inception date of 27 August 2001.
By contrast, the Vanguard Australian Shares ETF, which is by far the most popular ETF on the market, only opened its doors in May 2009. Another popular option is the iShares Core S&P/ASX 200 ETF (ASX: IOZ) which began in December 2010.
So the SPDR ASX 200 Fund certainly has a lot of runs on the board.
How is the SPDR S&P/ASX 200 Fund different to other ASX ETFs?
But this fund is very similar to other ASX index funds. It closely tracks the S&P/ASX 200 Index (ASX: XJO), which in itself represents the largest 200 shares on the ASX by market capitalisation. The iShares Core ASX 200 ETF does exactly the same thing.
You'll find BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA) and CSL Limited (ASX: CSL) amongst both ETFs' top holdings. As well as other major ASX 200 shares like the other ASX banks, Woolworths Group Ltd (ASX: WOW), Telstra Group Ltd (ASX: TLS) and Fortescue Metals Group Limited (ASX: FMG).
The Vanguard Australian Shares ETF is slightly different, tracking the largest 300 ASX shares, rather than the largest 200.
The only real difference between the iShares ASX 200 ETF and the SPDR ASX 200 Fund is the fees they charge investors. Here, the iShares ETF has a slight advantage, charging a management fee of 0.09% per annum. That's $9 a year for every $10,000 invested.
By contrast, the SPDR S&P/ASX 200 Fund charges 0.13% per annum or $13 a year for every $10,000 invested. Vanguard's Australian Shares ETF charges 0.1% per annum.
So the SPDR S&P/ASX 200 Fund is indeed an ASX ETF, despite the absence of 'ETF' in its name. But, despite its pedigree as the first ASX ETF, it is just one of many on the ASX today.
